Blue Ocean Shift Strategy Case Analysis in the Dairy Industry

This study aims to empirically examine the possibility of a successful blue ocean strategy by analyzing the case of Y Dairy, which overcame this situation with a blue ocean strategy and turned around the company. First, the analysis of Y Dairy's blue ocean strategy revealed facts and factors to be eliminated, such as unfair seniority-based performance evaluation and promotion system, loose management at the executive level with lifetime guarantee, low work productivity, a culture of not keeping records, and a situation where only certain people are entrusted with certain tasks. The Blue Ocean Strategy calls for a humanizing process to address these issues, emphasizing the need for employee buy-in, a fair process, and fair and transparent evaluation methods. Second, a number of factors to be raised were identified, which are costly, such as expanding investment in soy milk, strengthening plant-based beverages, expanding exports to China, strengthening fermented and lactose-free milk (easily digestible milk), strengthening low-fat milk, and improving soy milk BI (Brand Identity). Third, the factors to be reduced were mainly related to the need to reduce intermediary sales and increase direct sales in order to improve company profits by reducing intermediary trading margins in the sales division, and to reduce excessive promotional expenses incurred for home delivery promotion and online promotion activities. Finally, as a new value proposition to be created, it was necessary to launch the Severance Care brand in collaboration with S Hospital to diversify the business and expand the lifestyle health business, and the need to pursue M&A of existing companies to grow the business at a fast pace.